Zoutpansberg Private Hospital
Serving the medical needs of 500k+ people in Louis Trichardt and its surrounding areas
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SDG Alignment
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Investment Summary
SASB SECTOR
Healthcare
INVESTMENT DATE
May 2020
LOCATION
SASB INDUSTRY
Healthcare Delivery
IMPACT TARGET
Access to quality healthcare
FUND SHAREHOLDING
71.51%
Louis Trichardt
CLASSIFICATION: Peri-Urban
Zoutpansberg Private Hospital at a glance
ZPH is the only private hospital serving the medical needs of the 20,000+ people who call Louis Trichardt and its environs home. With the closest urban centre lying approximately 105 kilometres away and Johannesburg a further 473 kilometres south, ZPH plays a pivotal role in providing accessible and affordable acute and sub-acute medical services to the communities it serves. At the heart of ZPH lies a passionate and dedicated team who work tirelessly to provide patients with a high standard of care delivered with compassion.
ZPH is a member of the National Health Network (NHN), an association of independent hospitals. One key function of the NHN is to negotiate tariffs with Medical Schemes on behalf of its members. This membership gives ZPH and other hospitals in the network increased bargaining power in these negotiations.
What is the Social Challenge?
ZPH serves a critical function in addressing the rising need for healthcare services in the peri-urban areas of Louis Trichardt and its surrounding regions. While ZPH provides a variety of healthcare services, due to the size of the current hospital, the availability of specialized medical care is restricted. Consequently, individuals with specific medical conditions are compelled to seek treatment from major metropolitan hospitals, often requiring travel times ranging from one to four hours. In situations where patients lack personal transportation or require specialized assistance, they have to wait for ambulances for transportation to these hospitals, occasionally resulting in complications. The hospital also needs greater doctor support to cover a broader range of specialities.
Our Response:
The expansion project is estimated to cost approximately R175 million. The Fund has pledged to finance up to R135 million for the project. Summit has successfully obtained the remaining funding through equipment financiers and contributions from the new Doctors.
Furthermore, Summit has actively played a pivotal role in supporting ZPH throughout various aspects of the expansion project.
Architect's rendering of the new facility
Who are the Stakeholders?
ZPH is ideally located to serve the healthcare needs of the 500k+ people residing in and around Louis Trichardt and the Limpopo region. Among this population, approximately 200k individuals have medical insurance coverage. Additionally, there is a segment of the uninsured population, constituting around 6%, who seek self-pay medical services. ZPH plays a vital role in providing accessible healthcare to both insured and uninsured individuals in the region.
What is the Scale of Impact?
The expanded ZPH, a designated NHN hospital, will significantly enhance the availability of medical disciplines at affordable rates. This expansion introduces a comprehensive range of medical services, encompassing obstetrics and gynaecology, internal medicine, ophthalmology, paediatrics, physical medicine and rehabilitation, diagnostic radiology, and various surgical specialties like orthopaedics, general surgery, ENT, urology, plastic and reconstructive surgery, and dental services. The expansion effectively addresses the diverse healthcare needs of the community, eliminating the necessity to travel long distances for specialized care. With the addition of state-of-the-art facilities and advanced equipment, doctors at ZPH are equipped with the necessary resources to deliver high-quality healthcare services.
Job Creation:
The expansion project has resulted in the employment of 292 contractor and subcontractor employees. This includes 164 permanent positions and 128 temporary jobs filled by the local community. Out of the total workforce, 246 employees are black males, and 12 employees are black females.
Upon completion, the expansion is projected to create over 60 permanent job opportunities, based on a conservative assumption of 35% occupancy. As the occupancy rate reaches 50%, the number of permanent jobs at ZPH is expected to exceed 125. These employment opportunities will mostly be staffed by black females.
Community upliftment:
The Expansion of ZPH, which involves increasing the bed capacity from 32 to 92 and adding three more theatres (from 1 to 4), will facilitate the inclusion of several new attending specialists. As a result of this Expansion, there is projected to be a significant yearly increase in the number of patients being treated and surgeries being performed.
Transformation, Diversity & Inclusion:
The Fund, a BBBEE investor, currently holds a 71.51% ownership stake in ZPH. Targeted employee composition at 50% occupancy includes 88.3% black employees, 91.1% women employees, and 77.6% black women employees. Furthermore, eight of the fifteen new doctors joining as shareholders align with BBBEE, promoting diversity and empowerment within the facility.
What if ZPH Did Not Exist?
The absence of ZPH would result in limited access to specialized medical care and services for the local community. Patients would need to travel long distances, incurring additional expenses and facing delays in receiving necessary treatment. The lack of a designated NHN hospital would also lead to reduced healthcare options and a potential decline in healthcare quality. Additionally, the local economy would miss out on job opportunities and economic growth generated by the hospital. Overall, the non-existence of ZPH would have a significant negative impact on healthcare access, outcomes, and the local economy.
What are the Risks?
ZPH faces various risks in its operations. One risk is the shortage of doctor support, which has been mitigated by recruiting new doctors as shareholders. Environmental and social risks are managed through a detailed Risk Register and monthly monitoring reports. Incidents and injuries have been minor and promptly addressed. Measures have been taken to improve waste management, resolve water supply concerns, and minimize the impact of load shedding on energy supply. Community engagement and safety measures are also prioritized. Overall, ZPH is proactive in addressing these risks to ensure smooth operations and maintain high-quality healthcare services.